1. What type of economy does the USA have?

What is the role of the government in

the U.S. economy?

The United States has mixed economy that has maintained a stable overall GDP (ВВП)
growth rate, a moderate unemployment rate, and high levels of research and capital
investment.

The federal government does play an important part in the national economy. It provides
services and goods that the market cannot provide effectively, such as national defense,
public goods and services, assistance programs for low-income families, and interstate
highways and airports. The government also provides possibility and encourages the
production and consumption of certain types of products, and discourages the production
and consumption of others, establishes guidelines regulating environmental protection.

2. Do you think the economy of the USA could evolve from a relatively small agrarian
system into a highly complex industrial one? Elaborate the argument.

Today The United States of America is a highly developed industrialized country and it has
largest economy in the world. Shipbuilding, electronics, automobile industry, aircraft
industry, space research are highly developed in the States.

The United States is the undisputed leader in the industry niche, surpassing even China in
this regard. Despite the growing role of the service sector as a sector of the economy,
industrial production continues to play a huge role in the United States. America thrives in
areas such as services, agriculture, and industry. In many areas, the United States is the
undisputed leader.

Therefore, we can argue that the United States is a country with a highly complex industrial
system.

3. Throughout its history the USA witnessed periods of rapid economic growth and
dramatic economic and social downfalls. Could you name some of the most
significant periods of both the types?

After World War II, many believed that the hard times of the Great Depression could
return. However, instead, there has long been a robust economic growth. The automotive
industry has successfully returned to the production of motor vehicles; new industries such
as the aviation and electronics industries developed rapidly. The boom was also fueled by a
homebuilding boom, fueled in part by readily available mortgages for the demobilized
military. As a result of the post-war surge in the birth rate, the number of consumers
increased simultaneously. More and more Americans joined the ranks of the middle class.

The Great Depression is the largest and longest recession in the US economy, which
escalated into the global financial crisis. The crisis began on October 29, 1929. During one
trading session, brokers sell 16.4 million shares. The market fell $ 10 billion. The most
serious blow was dealt to the credit system. The collapse lasted for a week and spread to
other markets: prices for wheat, cotton and other goods fell to almost zero. In three weeks,
the total losses exceeded the US spending on the First World War.
4. Why is the USA considered one of the largest trading nations?

The United States is the largest trading nation in the world, because the U.S. is exporting
and importing more goods and services than any other country.

5. What sectors can the U.S. economy be divided into? What do these sectors deal
with?

The U.S. economy can be divided into 4 sectors : a natural resource sector, manufacturing
and energy sectors, service and commerce sector, information and technology sector.

The first sector provides goods that come directly from natural resources : agriculture,
forestry, fishing, and mining. The second sector includes manufacturing and the generation
of electricity. The third sector, made up of commerce and services. It comprises financial
services, wholesaling and retailing, government services, transportation, entertainment
tourism, and other businesses that provide a wide variety of services to individuals and
businesses. The fourth major economic sector deals with recording, processing, and
transmission of information, and includes the communication industry.

6. Which economic regions are singled out in the USA today?

The Northeast, The Great Lakes, The South, The Plains, The Rocky Mountains and The
Pacific states are singled out.

7. Why do we generally begin the description of the economic regions with the New
England states?

New England is far from the center of the country, is relatively small, and is relatively
densely populated. It was the birthplace of the Industrial Revolution in the United States as
well as being one of the first regions to experience deindustrialization. Today, it is the
center of education, research, high technology, finance, and medicine.

8. Why is the state of Massachusetts renowned for its higher education?

Massachusetts is renowned for its higher-education institutions. For example, world-

renowned American higher education institutions include the Massachusetts Institute of
Technology (MIT) in Cambridge (Massachusetts). The University of Massachusetts is the
five-campus public university system and the only public research system in the
Commonwealth of Massachusetts.